Wayfair price target lowered to $65 from $80 at Wedbush

Wedbush lowered the firm’s price target on Wayfair to $65 from $80 and keeps an Outperform rating on the shares. The firm notes Wayfair reported Q3 results that slightly missed expectations on the top line but impressed on the bottom line, while Q4 guidance was light on sales but better on margins. While Q3 revenue came in modestly lighter than the company and consensus expected due to a sharp -9% year-over-year decline in average order value, the 4% year-over-year growth against mid-to-high teens category declines points to continued strong market share gains as Wayfair reaps the benefits from its scaled platform, better in-stocks, and sharp pricing. However, Wedbush is cognizant of the fact that Wayfair is now lapping benefits from more aggressive promotions that began last fall, which could limit near-term share gains.